Follower notices

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Follower notices

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

Introduction

HMRC can issue ‘follower notices’ requiring taxpayers to take ‘necessary corrective action’ (ie amend their returns / claims or drop their appeals) where:

  1. the return or claim is subject to an ongoing enquiry or appeal (this includes an appeal against an assessment, determination or closure notice issued by HMRC), and

  2. there is a final judgment (which includes a decision in the First-tier Tribunal which is not appealed) in a tax case which HMRC is of the opinion applies to the taxpayer’s situation

FA 2014, ss 204–205

The penalties for failing to take the necessary corrective action following receipt of a notice can be as much as 50% of the tax and / or national insurance contributions (NIC) at stake and will apply in addition to any other penalties due up to a maximum of 100% of the tax (higher maximum percentages apply where an offshore matter is involved). For more on offshore matters, see the Penalties for offshore matters and offshore transfers guidance note.

The taxpayer must decide whether they should:

  1. accept the follower notice,

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+
  • 28 Feb 2025 12:22

Popular Articles

Gifts out of surplus income

Gifts out of surplus incomeA valuable exemption from inheritance tax (IHT) applies to gifts out of surplus income. This exemption applies only to lifetime gifts and is therefore a key part of lifetime planning. The exemption applies to both outright gifts and gifts into trust. Gifts which meet the

14 Jul 2020 11:48 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more Read more

Corrections and amendments to the IHT account

Corrections and amendments to the IHT accountThis guidance note explains how to deal with changes to the taxable values in the original inheritance tax account.Why do amendments arise?When the IHT account is first submitted to HMRC, it is based on information available at an early stage of the

14 Jul 2020 11:20 | Produced by Tolley Read more Read more

Research and development (R&D) relief ― overview

Research and development (R&D) relief ― overviewThis guidance note provides an overview of the research and development (R&D) tax reliefs for companies.See the Research and development tax relief summary diagram which summarises the R&D tax relief.See also Simon’s Taxes D1.401.For a factsheet which

14 Jul 2020 12:22 | Produced by Tolley in association with Will Sweeney Read more Read more